Last decade, a lot of countries implemented a transition policy from centrally planned command economies to market economies, while experiencing different socio-economic side effects. After these years, it is still an important issue in the countries which are not completely adjusted to market economy style, to manage the transition process in order to experience less wild fluctuations in prices. This paper represents recommended policies for Iranian Cement Industry which will deal with economic transition in near future. Using a System Dynamics approach, this paper gives some insights into analyzing similar economic policy problems.